The complaint says Prime member in low-income neighborhoods get slower delivery service
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In a significant legal move, District of Columbia Attorney General BrianSchwalb has filed a lawsuit against Amazon, accusing the retail giant of misleading thousands of District residents into paying for Prime delivery benefits they are not receiving.
Members of Amazon Prime receive free shipping, in most cases in two days or less. But thelawsuit, filed under the District's consumer protection law, alleges that since 2022, Amazon has secretly excluded two ZIP codes, 20019 and 20020, from its fastest delivery services, while continuing to charge the full Prime subscription price to approximately 48,000 affected members.
According to the complaint, Amazon, in June 2022, internally decided to halt the use of its branded delivery trucks in the specified ZIP codes, opting instead to rely on third-party services like UPS and the US Postal Service, known for slower delivery speeds.
Delivery exclusion
This decision, termed a delivery exclusion, wasnot communicated to the affected Prime members, leaving them unaware of the service change, the complaint alledges.
"Amazon is charging tens of thousands of hard-working Ward 7 and 8 residents for an expedited delivery service it promises but does not provide," saidSchwalb. "While Amazon has every right to make operational changes, it cannot covertly decide that a dollar in one ZIP code is worth less than a dollar in another."
Schwalb did not initially reveal how his office determined that Amazon is purposefully slowing deliver to these areas, but the attorney general points to Amazons delivery performance before and after June 2022.
In 2021, Schwalb said over 72% of Prime packages in the affected areas were delivered within two days. By 2023, this figure dropped to 25% in ZIP code 20019 and 24% in 20020. Meanwhile, Schwalb said delivery speeds across other District areas have improved, with over 74% of packages delivered within two days.
Schwalb said Amazon has yet to publicly respond to the attorney generals office about the lawsuit. However, CBS News reports Schwab was informed by Amazon of the change, made out of concern for driver safety.
Schwalb said Amazon was legally obligated to tell affected customers aboutt the change.
